Gold Prices Plunge Amid Global Market Pressures

Gold prices in India have plummeted to Rs 15,017 per gram for 24 carat gold. Rs 13,765 per gram for 22 carat gold. And Rs 11,263 per gram for 18 carat gold, amidst growing global market pressures and escalating tensions between the US and Iran.

According to Vikram Subburaj, CEO of Giottus.com, the current market situation is characterized by gold's struggles to regain momentum. Meanwhile, silver is showing early signs of recovery. The pressure on gold is largely driven by global market fluctuations.

With spot gold falling 1.5% to around $4,224 an ounce on September 28.

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Higher oil prices are adding to inflation concerns, keeping expectations of further US rate hikes in focus. A stronger dollar and higher interest rates are also weighing on non-yielding assets such as gold. This is currently trading at its lowest level in several months.

US President Donald Trump is set to engage in high-stakes negotiations this week, with expectations of a breakthrough outcome in Washington. In contrast, Pentagon officials have disputed Iranian claims that a US Navy underwater drone was seized in the Strait of Hormuz, a critical waterway in the Middle East.

A 60-day maritime armistice brokered by the US and Iran in mid-June 2026 has collapsed. Giving way to renewed missile strikes and escalating naval hazards. Both nations have resumed active military operations and severed all formal diplomatic channels, following the official breakdown of the agreement.

A global energy market shake-up has sent investors scrambling for safe-havens. Driving up domestic gold prices in tandem with international spot prices. Amid the recent relaxation of import taxes and heightened foreign exchange fluctuations.

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As a result, gold prices are experiencing a significant surge, with the metal currently trading at its highest level in several months. The recent collapse of the maritime armistice has also had a profound impact on global energy markets. This led to a sharp increase in gold prices.

Looking ahead, gold prices are expected to remain under pressure due to the ongoing global market trends and the impact of the maritime armistice collapse on energy markets. However, silver is likely to continue its early recovery trend, driven by the ongoing demand for the metal.

Meanwhile, the US Federal Reserve is expected to maintain its hawkish stance on interest rates, keeping expectations of further rate hikes on the table. This is likely to continue to weigh on non-yielding assets such as gold, driving prices lower.